Columbia Pipeline jumps on report of TransCanada Deal Talks

By Bloomberg

Published 9:29 am, Monday, March 14, 2016

Columbia Pipeline Group Inc. surged following a report that it’s in talks for a takeover by TransCanada Corp.

Houston-based Columbia rose as much as 18 percent after trading resumed following a pause triggered by a circuit breaker, and traded 15 percent higher at $22.75 as of 12:41 p.m. in New York. TransCanada fell as as much as 4.2 percent before trading of its stock was halted at 11:50 a.m., pending news.

The Wall Street Journal reported that the companies are in talks and that a deal could be reached in the coming weeks, citing unidentified people familiar with negotiations. Columbia has a market value of more than $9 billion and TransCanada is valued at about C$34 billion ($25 billion).

“It is company policy not to comment on market rumors or speculation,” James Millar, a TransCanada spokesman, said in an e-mailed statement. “As we have said previously, TransCanada remains focused on opportunities that would be in line with our strategy and grow shareholder value.”

In a subsequent statement, TransCanada said it’s in discussions “regarding a potential transaction with a third party,” and didn’t name any company. No agreement has been reached and there is no assurance the talks will continue or that a deal will be agreed upon, TransCanada said.

James Yardley, a spokesman for Columbia, declined to comment in a phone interview on “market rumors and speculation,” citing corporate policy.